409M SOL staked and counting – Is market missing Solana’s signal?

Solana fundamentals remain strong despite the weak price action of SOL. The network recently reached a new all-time high of 409 million SOL staked supply.  

This meant the chain’s security increased, but whether decentralization also improved was the big question. 

Solana validator crisis

In a move to ensure sustainable staking economics, the Solana Foundation cut off subsidies that were previously offered to some validators (entities tasked with proposing blocks on the network). 

So far, the Solana Foundation has reduced its delegated Solana [SOL] from 85 million SOL to 23 million SOL delegated to small validators. 

While a necessary step, the Foundation’s move has also forced most small validators to leave the staking space. Solana network validators have decreased by 68% from 2,500 to 800, prompting some to flag it as a decentralisation risk if the trend continues. 

For comparison, Ethereum [ETH] has nearly 1 million validators or 1,250 times more validators securing its network. 

Solana RWA traction spikes

That said, network activity is also increasing in response to the real-world asset (RWA) tokenization. The number of RWA holders across the Solana ecosystem reached a record level of over 115K, a 11% surge in the past 30 days despite a broader market lull. 

This meant a rising demand for tokenised assets, such as on-chain stocks, credits, and money markets, among others. 

However, based on RWA net flows, Solana has lagged behind other chains. In Q4 2025, Solana attracted $216 million in net flows. In contrast, competitors like BNB Chain [BNB] and Ethereum each attracted +1 billion in inflows, suggesting a six times outperformance. 

Surprisingly, Solana RWA users were close to Ethereum’s 138K holders but way higher than BNB Chain’s 8K holders, but lagged behind in net flows. This meant BNB Chain RWA users were big players, hence capable of moving large flows despite having a relatively small number of holders.  

Nevertheless, SOL’s price was not reflecting the improving network fundamentals mentioned above. The token’s price has dropped by 58% and traded at $121 at the time of writing. 

Final Thoughts 

• Solana’s staked supply and RWA activity reached record highs in 2025.
• However, validators have dropped by 68% and SOL’s price also tanked by 58%.